Dangote Cement: Consumers’ patronage boosts sales volume by 26.1 percent Q1 2024 –Management

*Dangote Cement Plc discloses the company’s domestic sales volume increased by 26.1 percent to 4.6Mt in the First Quarter of 2024, indicating the ‘Nigerian operations volume rose significantly and positively affected the rise in the Group’s overall volume to 7.0 Mt’

Isola Moses | ConsumerConnect

The Management of Dangote Cement Plc say certain measures the company has adopted to increase sales and ensure an adequate supply of products to consumers are yielding the desired results.

The company disclosed in a recent statement that domestic sales volume increased by 26.1 percent to 4.6Mt in the First Quarter (Q1) of 2024.

Dangote Cement noted that the unaudited results for the three months that ended April 30 this year indicated the Nigerian operations volume rose significantly and positively affected the rise in the Group’s overall volume to 7.0 Mt.

It also noted the company recorded a Group revenue of N817.4 billion, even as Profit After Tax (PAT) inched, up by 2.9 percent to N112.7 billion.

Earnings Per Share closed the quarter at N6.68, representing an increase of 3.7 percent.

According to the Group as part of its sustainability programme, Dangote Cement commissioned 10 of the 17 Alternative Fuel Projects across the Group.

Speaking on the development, Arvind Pathak, Chief Executive Officer (CEO) of Dangote Cement, said: “Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1 percent to 4.6Mt in the quarter.

“Similarly, our pan-Africa operations continued an upward trajectory, with volumes up 3.1 percent to 2.7Mt, buoyed by increased sales in Zambia and Congo.

“Despite elevated cost pressures, increased borrowing costs, and a further currency weakening, our first-quarter results reflect our commitment to navigating challenges effectively.”

Pathak also explained: “Group revenue more than doubled to ₦817.4 billion, while Group EBITDA rose 66.6 percent to ₦309.5 billion. Profit After Tax was up 2.9 percent at ₦112.7 billion.

“These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders.”

The company as well stated that during the quarter, it emphasised exports, dispatching seven ships from Nigeria to Ghana and Cameroon.

“As a result, our Nigerian exports surged by 87.2 percent, reflecting our commitment to expanding our presence in regional markets and capitalising on our export-to-import strategy.

“We continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future,” the CEO said.

Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa.

A fully integrated quarry-to-customer producer, Dangote Cement has a production capacity of 35.25Mta in Nigeria.  Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines;  Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant, in Benue State, has 4Mta; and  Okpella plant, in Edo State has 3Mta.

Through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries, states the Management.

Besides, the company revealed it has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (2.0Mta clinker grinding and import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta) and  Zambia (1.5Mta) respectively.